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Itaú prices $750M of Tier 1 notes

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Itaú prices $750M of Tier 1 notes

Itaú Unibanco Holding SA priced a $750 million offering of perpetual Tier 1 subordinated notes, saying they will be issued at a fixed rate of 6.5% on March 19.

The offer price of the notes was 100%, resulting in a yield of 6.5% until the fifth anniversary of the issuance. After that, the coupon will be reset every five years based on the prevailing rate for U.S. Treasury bonds.

Itaú added it may repurchase the notes five years after the issuance date or on any interest payment date after then, though this is still subject to approval from the central bank or any other relevant Brazilian regulatory agency.

The bank will also request from the central bank approval to include the notes as additional Tier 1 capital, which would add 30 basis points to its Tier 1 capital ratio.